Malta and India Sign Double Taxation Avoidance Agreement

| Published on 23 Apr 2013

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On 8th April 2013, Malta and India signed an agreement for the avoidance of double taxation and prevention of fiscal evasion on income tax. This agreement is aimed at facilitating greater trade and economic exchanges between the two countries. Once signed and in force, the new tax treaty will supersede the existing Malta – India Double Tax Treaty (L.N. 46 of 1995) which was signed and ratified way back in 1995.

Signature took place during a meeting between India’s external affairs minister of state Preneet Kaur and Malta’s foreign affairs minister George Vella, which meeting was held with the primary aim of discussing bilateral cooperation between the two countries.

It is forecasted that once the Double Taxation Avoidance Agreement enters into force, the flow of capital, technology and personnel between both the countries will be further stimulated and strengthened. The Treaty will also provide tax stability and will reduce any obstacles for mutual cooperation between countries.

A Joint Commission and a Business Council for technical discussions on visa facilitation, trade agreements and cooperation in the fields of science, technology and education will also be set up.

The Indian Minister mentioned the necessity of increased co-operation in areas such as the film industry and India’s skills in renewable energy sources. Possible benefits for India include Malta’s strategic position in the Mediterranean, the country’s favorable tax environment, the widespread use of the English language, especially in the business world and Malta’s locus as a useful interlocutor for trade policy discussions with the European Commission.


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